Area 1031 Exchanges for Real Real Estate Traders When a real estate investor markets property, a funding gains tax is acknowledged, together with a tax obligation on deprecation regain. The normal funding gains tax, deprecation regain, and also any kind of appropriate state tax can commonly cause a tax responsibility in the 20% to 25% variety for the sale of realty. (If the real estate has actually been held for less than year, every one of the gain will be exhausted at much higher short-term funding gains prices.).